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Free Market Technology Can Help the Environment

The Alabama Public Service Commission recently approved a measure that would allow consumers to permit Alabama Power to install a device that would automatically cut off their air conditioners during peak usage times (when most people are at work anyway). The incentive is that consumers would save $20 on their November electric bills.

Although I think this is a good start towards providing consumers with greater flexibility and options as far as their electricity usage, it’s still way behind the times.

When I ran for the Alabama Public Service Commission in 2008, I learned a great deal about existing technology that would save power and dramatically cut utility bills.

One of the measures I strongly supported during my campaign was more nuclear power production. Of course, this can be a controversial issue. But if there is already a way for consumers to dramatically cut their electricity usage without significantly impacting their daily routines, then constructing new power plants (nuclear or otherwise) could be delayed for years, satisfying everyone.

Happily, such technology exists today. In fact, it’s been developed in my home state of Alabama.

Huntsville, Alabama, is the Silicon Valley of the Deep South. If you haven’t visited recently, you’d be surprised at all the changes.

One of the new companies I visited while campaigning was Carina Technologies, Inc., led by Jay Newkirk.

Carina has developed a “Smart” electric meter that can create a tailor-made electric plan for each consumer. For instance, the meter can tell when a consumer is away from their home and turn down the air conditioner, or cut off the hot water heater. Simply regulating a hot water heater can save up to 30% on a power bill.

This new electric meter “talks” to the local power grid constantly, telling it how much power you need and only using what you need.

Rarely do the “Drill baby drill!” conservatives like me and the “tree-hugger” environmentalists agree on anything. But energy efficiency is something we can all work together to achieve. It’s good for business, it’s good for consumers, and it’s good for the environment.

How this involves the PSC is crucial because most Alabamians get their electricity from Alabama Power, which is regulated by the PSC. It is important that Public Service Commissioners familiarize themselves with and understand the available technologies that can be brought online and cut costs for everyone.

If the Public Service Commission continues to support a policy against de-regulating utilities, then it should make sure that these protected monopolies provide cutting edge services to consumers. This requires that Commissioners themselves be familiar with existing technologies and work towards implementing them in the form of new policy.

Perhaps a good place to start a pilot program incorporating Carina-style smart meters would be in Jefferson County, a place that really needs to save money right now.

how does free market technology help the environment

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